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Response to mahatmakanejeeves (Original post)

Fri Feb 5, 2021, 01:34 PM

4. So we went backwards, eh? Jan: +49,000. Nov & Dec revised down a combined 159,000.

49-159 = -110

So we have 110,000 fewer jobs than we saw in the previous month's report. Interesting.

==####################################==

No wonder the unemployment rate dropped. That's because the labor force in January dropped 406,000 from December. It has dropped 657,000 over the past 5 months.

(The labor force is the sum of the employed + unemployed. The unemployed is defined as the jobless who have looked for work sometime in the past 4 weeks, and say they are ready and willing to take a job.

The unemployed dropped by 606,000. The employed supposedly increased by 201,000. Thus the labor force dropped by 606,000 less 201,000 = 405,000 = 406,000 after correcting for roundings.

The "employed" in the Household Survey report -- the report that produces the unemployment rate and the labor force participation rate, as well as the "employed" and "unemployed" above -- is different from the headline nonfarm payroll jobs number which is produced from the different Establishment Survey).

Anyway, the point is that far fewer people were looking for work in January than in December.

The labor force participation rate for prime age people (age 25-54) :
Feb 2020: 82.8. Then it plunged then got back up to June: 81.5 and has been wiggly-line dwindling ever since, now (January 2021) at 81.0. The graph is a much better illustration: http://data.bls.gov/timeseries/LNS11300060

==####################################==

I see the Washington Post got it wrong:

"In December, the labor market slid backwards, shedding 140,000 jobs, "

False, the December number was revised to shedding 227,000 jobs.

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mahatmakanejeeves Feb 2021 OP
BumRushDaShow Feb 2021 #1
mahatmakanejeeves Feb 2021 #2
progree Feb 2021 #3
LineNew Reply So we went backwards, eh? Jan: +49,000. Nov & Dec revised down a combined 159,000.
progree Feb 2021 #4
mahatmakanejeeves Feb 2021 #5
mahatmakanejeeves Feb 2021 #6
progree Feb 2021 #7
mahatmakanejeeves Feb 2021 #8
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